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How Do Brokers Choose Lenders

The process of buying an aircraft is more akin to a home or investment property purchase than it is to the purchase of a car. And with dozens of aircraft finance options out there, it’s no easy task to find the right lender for your situation. 

The complexity of the transaction can sometimes result in an unpleasant experience, particularly for a first-time buyer. That’s why it’s prudent to have a broker guide you through the process and to the right lender. After all, the transaction is only as smooth as the lender/broker relationship is good.

That’s why AOPA Aviation Finance (“AAF”) representatives only work with lenders who provide exceptional, high-touch customer service. What we’re looking for is what’s best for our members while maintaining the best possible relationship with our lenders. After all, money is money, so above and beyond that, it’s the customer service that counts. 

A lot of our members are financially savvy. Some of them might ask, “Why not go it alone? Two dozen lenders are certainly far fewer than the hundreds of mortgage companies out there. I could have my assistant knock out those applications in one day.” Three reasons: The first is exposure. Submitting application packages to multiple lenders while trying to winnow them down to the single lender best suited to your situation may result in multiple credit score pulls, exposing and potentially damaging your credit.

Reason number two, lenders tend to be specialized. Most make loans in only one aircraft category— either piston, multi-engine, turboprop or jet. The only way to know who deals in which category is to query them.  But many lenders don’t work directly with the public. They rely on brokers to provide customers and to do the legwork, bringing up the third reason--access. 

Some brokers may transact 20 deals a year. AAF averages 800 a year. Doing that many deals annually gives us constant access to banks. The consistency of our relationships therefore gives AAF keen insight, and leverage, into which lenders can offer you the best loan structure for your situation.

For instance, we’re able to negotiate with banks to offer our member clients low-doc solutions. Sometimes it makes more sense for a borrower to trade a slightly higher interest rate for a slightly better loan structure resulting in lower payments and the convenience of less paperwork. Other brokers don’t have those kinds of lender relationships. The ability to negotiate exceptional loan packages is but one reason why it’s as important for AAF to maintain great relationships with banks as it is for us to build great relationships with our members.

Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263) or click here to request a quote.

Adam Meredith

Adam Meredith

President of AOPA Aviation Finance Company
Adam Meredith, President of AOPA Aviation Finance Company, is an aircraft finance professional with more than 15 years lending, small business management and customer service experience. Adam is a commercial pilot with multi-engine and instrument ratings.
Topics: AOPA Aviation Finance Company, AOPA Products and Services, Ownership

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